Economic Challenges and Terrorism in the Global Context of Pakistan

Terrorism has become an important and recurring topic in public discussion, which has created economic challenges over the last few decades and is a serious global issue. The security challenges of terrorism are international. It has challenged Westphalian articulations in the international arena and activated public policymaking across all governments. This study explores the relationship between terrorism and economic globalization in South Asia, particularly focusing on Pakistan. Indicators of economic globalization are foreign direct investment, exports, and imports as percentages of gross domestic product. In this study, terrorism was operationalized as the number of deaths due to terrorist attacks from 2002 to 2015. This study compiled secondary data on the indicators of globalization and terrorism obtained from the South Asia Terrorism Portal and the World Bank archive. A descriptive analysis was performed to examine the annual increase or decrease in economic globalization and terrorist attacks. An inferential statistical technique: Pearson’s correlation was used to test the hypotheses. The results show that terrorism negatively affected Pakistan’s economic globalization.